06:33 AM EDT, 04/30/2024 (MT Newswires) -- NXP Semiconductors' ( NXPI ) shares gained early Tuesday after first-quarter earnings bested Wall Street's expectations, while the Dutch chipmaker issued an upbeat short-term outlook at the midpoint.

Adjusted earnings are set to come in between $3 and $3.41 a share for the second quarter, the company said late Monday. The midpoint of $3.20 is better than the Capital IQ-polled consensus of $3.14. Revenue is pegged at $3.03 billion to $3.23 billion, with a midpoint of $3.13 billion, while the Street is looking for roughly $3.12 billion.

The semiconductor designer's US-listed shares have gained about 7.6% so far this year and rose 3.6% in premarket activity.

"Our first-quarter results, guidance for the second quarter, and our early views into the second half of the year underpin a cautious optimism that NXP is successfully navigating through this industry-wide cyclical downturn," Chief Executive Kurt Sievers said in a statement. "We continue to manage what is in our control enabling NXP to drive solid profitability and earnings in a challenging demand environment."

For the three months through March, the firm recorded adjusted EPS of $3.24, up from $3.19 the year before and topping analysts' estimate of $3.18. In February, NXP guided for first-quarter adjusted EPS to be in a range of $2.97 to $3.38.

Revenue edged up to $3.13 billion from $3.12 billion in the prior-year period, just shy of the Street's view. The result was in line with the midpoint of the company's own guidance, with all of its focus end-markets "performing as expected," according to Sievers.

In the automotive segment, revenue ticked down 1% to $1.8 billion while industrial and internet of things climbed 14% to $574 million. Mobile revenue jumped 34% to $349 million and communications infrastructure slumped 25% to $399 million.

The chipmaker's adjusted gross margin remained flat on a yearly basis at 58.2%. Operating expenses narrowed to $921 million from $942 million in the 2023 quarter.

Price: 256.98, Change: +9.85, Percent Change: +3.99